Swiss investment bank UBS said receipts data indicates that industry volumes in February 2026 grew 20% to 21% year-on-year.
The brokerage said that food delivery volumes have maintained healthy growth momentum, with industry expansion sustaining above 20% YoY so far.
However, UBS cautioned that volumes in March and April could face some pressure due to the ongoing shortage of commercial cooking gas. Despite this, market share trends have remained largely stable during the first two months of the March quarter, the brokerage wrote in its note on food delivery companies.
In the quick-commerce segment, UBS said Blinkit continues to widen its reach advantage compared to rivals such as Instamart and Zepto.
UBS maintains a ‘Buy’ rating on Eternal with a price target of ₹375. The brokerage is also bullish on Swiggy, assigning a ‘Buy’ rating with a price target of ₹510.
Govt to allocate 20% of commercial LPG to eateries
Meanwhile, the central government has stepped in to address the cooking gas shortage affecting restaurants and food delivery operations. Authorities said commercial LPG cylinders will be released on priority to prevent panic-driven bookings and reduce the risk of restaurant closures.
Under the new arrangement, oil marketing companies will allocate 20% of the average monthly commercial LPG requirement to restaurants and eateries starting immediately.
The shortage has been linked to disruptions in global gas supplies amid the ongoing conflict in West Asia.
Qatar Energy, one of the world’s largest gas producers, recently declared force majeure, affecting downstream clients and creating ripple effects across supply chains.
As a result, several restaurants across the country have either trimmed their menus or temporarily shut operations until commercial LPG supplies normalise.
The government has also said that steps are being taken to ensure domestic LPG availability remains unaffected.
The Gig Workers Association has flagged concerns about the impact of the gas shortage on workers, citing that 50% to 60% of orders on food delivery platforms have been affected.
Among analysts tracking Eternal, 30 out of 33 maintain a ‘Buy’ rating, while three recommend ‘Sell.’ Swiggy has coverage from 28 analysts, of whom 23 rate the stock a ‘Buy,’ three suggest ‘Hold,’ and two recommend ‘Sell.’
Shares of Eternal ended Thursday’s session 1.30% lower at ₹220.90, while Swiggy closed at ₹282.20, down 0.84%. Swiggy continues to trade well below its IPO price of ₹390, while Eternal has also corrected from its recent 52-week high of ₹367.
